International Journal of Management and Enterprise Development (12 papers in press)
Business model research using an evolutionary theory perspective
by David Brannon, Verona Edmond
Abstract: We show how evolutionary theory may be used as an overarching tool to develop a better understanding of the business model concept. The business model concept continues to draw interest. Academics have approached the business model concept as a means to explain value creation and implementation of innovative business ideas. Progress on the concept has been slowed due to disparate views and definitions. This paper illustrates that evolutionary theory provides a comprehensive, well-established theoretical basis to examine the business model concept - especially in terms of innovation and entrepreneurship. This includes theoretically guided origins of innovation based on firm characteristics. Research on the business model concept has been conceptual or case studies. Configuration analysis (based in evolutionary theory) is proposed as a means to empirically examine this complex concept. Evolutionary theory has the potential to bridge the different views of the business model as a holistic concept for implementing innovation.
Keywords: Business Models; Innovation; Entrepreneurship; Evolutionary Theory; Organizational Routines; Configuration Theory
Success Factors for Active Internationalization of Small and Medium-Sized Software Enterprises: Case Analyses from France and Brazil
by Maurício Floriano Galimberti, Raul Sidnei Wazlawick
Abstract: In many countries there is a small but growing tendency towards the internationalization of small and medium-sized software enterprises (SMEs). This paper searches for insights about the internationalization process of SMEs with highly innovative products. It compares the internationalization process in France, as a mainstream country in terms of technology, and Brazil, as a non-mainstream one. This paper attempts to answer the following questions: what are the factors that enable SMEs to offer high value-added products to the foreign market, and what are the differences and similarities between internationalization processes from both countries. Based on a multiple case study, this research shows that although innovation, entrepreneurship, and foreign market knowledge are important dimensions for the active internationalization, networking is not as relevant as it was thought to be. Moreover, the study shows that internationalization consists of two different processes.
Keywords: active internationalization; software innovation; software SMEs
Financial failure of a startup: A simulation approach
by Erkki K. Laitinen
Abstract: The objective is to develop a simulation model of a startup to assess the ceteris paribus effects of (sixteen) different parameters on the likelihood of financial failure. The deterministic growth path is described by a second-order Pascal distribution. Uncertainty is incorporated assuming a random variable proportional to sales. Three criteria for financial failure are developed to assess the likelihood of different failure types (profitability, solidity, and liquidity failures). Finnish data from 9066 non-failed and 118 failed startups are used to approximate the value range of the parameters in non-failed and different types of failed startups. For each parameter, effects are analyzed for 25 different values based on 1000 simulation rounds each. The findings strongly emphasize the central role of internal rate of return in the likelihood of each type of failure. They also emphasize importance of early generation of sales for the likelihood of profitability failure and the strong effect of fixed expenses, size of initial investment, and initial equity capital on failure likelihood.
Keywords: Startup; financial failure; bankruptcy; liquidity crisis; profitability; failure probability; simulation.
Special Issue on: Behavioural Issues in Family Enterprises
TIME TO RECALIBRATE? EXPLORING ENTREPRENEURIAL ORIENTATION OF FAMILY BUSINESSES BEFORE, DURING, AND AFTER AN ENVIRONMENTAL JOLT
by G. Tyge Payne, Curt Moore, Jennifer Sexton
Abstract: Entrepreneurial orientation (EO) has become a construct of considerable interest in the family business literature. Despite such attention, scholars have yet to examine if and how EO in family businesses changes over time. This study explores this gap by investigating both continuous and discontinuous change in EO in a sample of S&P 500 family businesses between 2001 and 2012. We find that EO changes before, during, and after an environmental jolt, which is defined as a major unforeseen and discontinuous environmental change. More specifically, we find that EO gradually increases at a linear rate prior to the occurrence of a jolt, discontinuously decreases during the initial stage of the jolt, then resumes a gradual linear growth trend following this period. We further explore the relationship between time and EO by examining change in EO across different industries, finding significant changes between family firms in different industries.
Keywords: Family Business; Entrepreneurial Orientation; Temporality; Time; Crisis; Discontinuous Change
Internationalization of Publicly Traded Family Firms: A Transaction Cost Theory Perspective and Longitudinal Analysis
by Esra Memili, Kaustav Misra, James Chrisman, Dianne Welsh
Abstract: There has been a prominent stream of research investigating internationalization of organizations. While the importance of transaction costs in the governance decisions of firms has been well established in the literature, transaction cost theory (TCT) in family firms remains under utilized. We examine the impact of family governance (i.e., family ownership and familys involvement in management and board) on internationalization within the domain of TCT on 386 of S&P 500 firms. Our findings indicate an inverted U-shaped relationship between family ownership and internationalization and a u-shaped relationship between familys involvement in management and board and internationalization. This illustrates the interesting differential impact of family involvement components on internationalization. We conclude by discussing future research and implications for practice.
Keywords: Transaction Cost Theory; Internationalization; Family Firms; Family Ownership; Family Management
Special Issue on: Intangible Asset Management in Inter-Organisational Innovation Processes
Inter-Organisational Innovation Processes in the European Food & Drink Industry
by Ana Isabel Almeida Costa, Marco Greco, Michele Grimaldi, Livio Cricelli, Vincenzo Corvello
Abstract: Although the Food and Drink (F&D) industry is Europes largest manufacturing sector, few studies have explored its innovation activities so far. Starting from the widespread assumption that F&D manufacturers are supplier dominated
Keywords: food & drink; food & beverages; R&D intensity; capital goods investment; open innovation; community innovation survey; CIS; internal R&D; external R&D; supplier dominated; innovation activities
EXPLORING INNOVATION CONTEXTS: SYSTEM, NETWORK AND ECOSYSTEM INNOVATION
by Anna D'Auria, Marco Tregua, Tiziana Russo-Spena, Francesco Bifulco
Abstract: This paper aims to depict conceptualizations of many-to-many innovation, in order to understand which are the most relevant features theorized. The growing interest in the topic led to the definition of different innovation labels to those analysed in the present research, namely innovation system, innovation network and innovation ecosystem.rnIn order to pinpoint common and different elements in the three literature contexts, we performed a bibliometric analysis to observe the wide range of literature on the themes. In detail, we investigated the keywords provided by authors through a double-step co-word focusing the analysis on the last five years contributions.rnThe analysis led us to observe the relevance of management and technological features as tools to get the best from open contexts, especially as concerns knowledge; while the role of strategy appeared less significant, especially when moving from system to network to ecosystem literature.
Keywords: innovation, innovation system, innovation network, innovation ecosystem, system, network, ecosystem, bibliometric analysis, co-words analysis
Investigating the relationship between open business models and intangible assets
by Emilia Lamberti, Mauro Caputo, Antonello Cammarano, Francesca Michelino
Abstract: The purposes of this paper are to (1) define the open business models of companies and (2) relate them to the intangibles portfolio composition in terms of R&D, goodwill and other intangibles. A sample of 234 worldwide top R&D spending firms is examined, drawing on secondary data from audited consolidated annual reports for the period 2010-2012.
The work provides a contribution to both innovation management theory and practice. On one side, it investigates inbound and outbound aspects of open innovation after a pecuniary perspective. Five models are defined - collaboration, outsourcing, licensing, trading, and incorporation - which, if combined, denote the openness of companies innovation strategy. On the other side, the devised framework constitutes a starting point to develop guidelines for managers to leverage the intangible assets of their organisations in order to innovate and generate value in an open innovation context.
Keywords: Intangible assets; Intangibles portfolio; Open business models; Open innovation; Inbound open innovation; Outbound open innovation; Innovation strategy; Bio-pharmaceutical; Technology hardware & equipment.
Research on Chinas Knowledge Sharing System: Under Open Innovation Framework
by Xi Wang, Liliana Mitkova
Abstract: Knowledge sharing is considered as a main driver of successful open innovation. By probing into the practice and development of China's knowledge sharing system, the paper has focused on the practical evidence from both the institutional and organizational perspectives. At the institutional level, the paper put in evidence the government regulation to construct a system of specific Chinese knowledge sharing mode between firms, universities, research institutions and market. At the organizational perspective, the article analyses the organization forms for the knowledge sharing system at the industry level as well the case of Huawei as a typical High-tech enterprise in China. The main contribution of the article is to illustrate the Chinese experience in the organization for the knowledge sharing system in order to implement the open innovation model.
Keywords: Knowledge Sharing, Open Innovation, Chinese Innovation Model
Adopting Open Innovation in Supply Networks
by Niloofar Kazemargi, Corrado Cerruti, Andrea Appolloni
Abstract: Knowledge distribution compels firms to search outside for new knowledge to sustainrntheir competitive advantage. The purpose of this paper concerns the role of networkrnstructures and inter-organizational relations on purposive knowledge inflow. It alsornaims to suggest conditions for enhancing knowledge flow in different types of openrninnovation practices with suppliers.rnBased on past research, four types of open innovation approaches, through which focalrnfirms can gain access to their suppliers knowledge, are considered. Building onrnextensive open innovation literature and social network theory, we develop arnconceptual model that identifies network conditions for each open innovation practicernwith suppliers.rnrnThe contribution of this paper is in extending the body of literature in open innovation research by proposing a framework that conceptualizes the role of social networks inrnopen innovation practices. The proposed framework can be useful to practitioners inrnadopting the most favourable network conditions, and also classifies supply networkrnconditions based on open innovation practices.
Keywords: Open Innovation, Suppliers, Social Network, Network Structure, Buyer-rnSupplier Relationship, Trust, Inbound, Inward IP licensing, Outsourcing R&D,rnExternal Network, External Participation
Dimensions and practices of the collaborative relationships between cultural and creative organizations and business
by Antonio Lerro, Gianluca Elia, Giovanni Schiuma, Giuseppina Passiante
Abstract: According to the Open Innovation approach, collaborative relationships between cultural and creative organizations and business are consistently growing in the last few years. This paper first develops a typology of these relationships. Then, adopting a multiple case-study research method and using a selected sample of Italian manufacturing and services companies, these kinds of collaborative relationships are empirically investigated. Motivations, practices as well as factors enabling or hampering these collaborative relationships are identified and analyzed.
Keywords: Open Innovation; Collaborative Relationships; Cultural and Creative Organizations; Managerial Practices; Italy
Innovation in a globalizing world: within or beyond local clusters?
by Silje Haus-Reve, Martin Gjelsvik
Abstract: This paper addresses the question of how clustering effect firms capabilities to innovate. Specifically we examine whether firms located in local clusters are more innovative than firms not situated in local clusters. The paper uses a specifically tailored survey of the geographical distance and scope of collaboration for innovation of firms located in Norwegian city-regions. We find that a majority of firms are located in regional clusters. However, locating in regional clusters is not the optimal strategy for firms to innovate. Relating to a broader national cluster enhances the capability to market new products, and being part of an international business environment improves the capacity to launch radical or substantially new products. These findings question the strategic management literature, which holds a strong belief in the concept of regional clusters.
Keywords: product innovation, process innovation, clusters, strategic management, resource-based view, regions, global pipelines, survey, diamond model, firm size, ownership